SECL’s Coal auction fetched comparatively high bids by around INR 100-400/MT. Large quantities of the material were purchased mostly by the participants who lost their mines in captive block auctions.
South Eastern Coalfield Limited had scheduled an e-auction for 1.1 MnT Non-coking coal on two dates, 20 & 21 Mar’15. The current auction, received comparatively high bids upto INR 400/MT because of buyers’ eagerness to pay high prices for domestic coal.
In recent captive Coal block auctions (Schedule II & III), many Sponge and Power manufacturers lost their mines and are now left with the choice of either buying costlier coal from spot market or importing fuel. Block auction result reflects directly in SECL’s coal auction prices as current top 5 quantity bidders had earlier lost their mines in captive block auctions; on the other hand few issues of theirs are still on hold and waiting for Delhi HC’s order.
Domestic Steel plants, which collectively owned 72% of the Coal mines in prior allocations, presently hold just 32% of blocks and are now dealing with the fear of Coal shortage in near future.
One Market Participant highlighted, “Recent auction prices have increased by INR 400/MT on the grounds of block auction results .Many buyers are ready to pay high prices for domestic grade fearing of Coal shortage in running plants.”
In Current SECL’s Auction, Bharat Aluminum, Jindal Power, Prakash Industries and JSPL bid for the highest quantity 0.26 MnT, 0.22 MnT, 0.05 MnT and 12000 MT respectively.
Bharat Aluminum received G12& G11 (3700-4300 GCV) Sized ROM coal at an average INR 1,642/MT. Meanwhile Jindal power bid INR 1390/MT for same grade on base price of INR 1068/MT. Agarwal Coal Corporation bid for G4 Sized ROM at INR 4010/MT with floor price of 3490/MT.
All the top quantity bidders are from the companies who lost their captive blocks and a few of them are yet to get final verdict from HC on block ownership transfer issue such as Bharat Aluminum, Jindal Power.
Domestic material G8 (4900-5200 GCV) from Baroud OC was sold at around INR 2,598/MT which increased by INR 450/MT compared to last auction prices. Gevra OC (Stock) for G11 (4000-4300 GCV) grade, price has risen by about INR100/MT as compared to last prices.
In this auction about 80% quantity was bagged by domestic traders, 7% by Sponge manufactures and rest of the quantity was bagged by other buyers related to Power, Cement, Paper, Aluminium and Bricks sector.
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